This would absoutely be better. For example If your bank gave you overall £10K credit and then let you choose between:
- 56 Days interest free credit if you use it as credit (in the form of a credit card)
- Fixed interest and monthly payments if you use some for a loan
- Fixed interest if you choose to use it as o/d buffer.
You could use any of features or all of them without having seperate lending facilities for each
I previously mentioned this here Starling Discussion & Feedback - #3250 by anon75400416
If the bank didn’t charge overdraft fees (Like Starling) unless you’re overall in debt with them it would be interesting to see if they could apply the same lending process to credit cards and loans by combining them
For example I may have £2500 in savings but want to take advantage of section75 protection for something that costs £2000. In this instance I could borrow the money and not have to pay interest because overall I am still in credit.
I feel this is the kind of innovation Fintechs like Monzo and Starling should be doing